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3 years ago

According to Okun's law, if the unemployment rate goes from 4% to 6%, what

Business

1 answer:

Dimas [21]3 years ago

7 0

Answer:

GDP will reduce by 4%

Explanation:

According to Okun, a 1% increase in unemployment will cause a 2% decrease in the level of GDP, and a 1% decrease in unemployment will lead to a 2% increase in the level of GDP.

What this means is that for every increase in unemployment, there is a corresponding double reduction effect on GDP.

In the scenario presented above, we can see that unemployment has gone from 4% to 6%, this means that there has been a 2% increase in unemployment. This 2% increase will therefore cause a 4% decrease in the GDP.

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A letter from Coulton Engineering Company dated September 12 is to be filed in the Coulton file. How should you arrange it in th

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<span>C. By date with the latest date in the front of the folder </span>

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4 years ago

Suppose that the production of a good generates a negative impact upon third parties. If the market does NOT take these negative

Lelu [443]

Answer:

The price will decrease and the quantity of the product sold will increase.

Explanation:

The price quoted would be lower because the social costs are not part of the cost of the product. This would increase the demand of the product because financially it is more beneficial and the price demand relation says that when the price of the good decreases the demand of the product increases and vice versa. So this means that the company will earn more but the society will have to bear the cost of the negative impacts.

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3 years ago

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MAVERICK [17]

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4 years ago

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3. You run a construction firm. You have just won a contract to construct a government office building. It will take one year to

Gre4nikov [31]

Answer:

NPV= $1,983,471.1

Explanation:

Giving the following information:

To calculate the present value you need to use the Net Present Value. The NPV is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

The formula is:

NPV= -Io + ∑[Rt/(1+i)^t]

where:

R t =Net cash inflow-outflows during a single period t

i=Discount rate of return that could be earned in alternative investments

t=Number of timer periods

NPV= -10,000,000 - 5,000,000/1.10 + (20,000,000/1.10^2)

NPV= $1,983,471.1

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3 years ago

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being

Elan Coil [88]

Answer:

B. Going-concern assumption.

Explanation:

The financial statements are normally prepared on the assumption that an entity is a going concern and will continue in operation for a foreseeable future. Hence, It is assumed that the entity has neither the intention nor the need to liquidate or curtail materially the scale of its operations. If such an intention or need exists, the financial statements have to be prepared on different a basis and , if so , the basis used is disclosed.

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4 years ago